Jefferies Downgrades SolarEdge Technologies (SEDG) to Underperform

Jefferies analyst Julian Dumoulin-Smith downgraded SolarEdge Technologies (NASDAQ: SEDG) from Hold to Underperform with a price target of $17.00 (from $27.00).

The analyst comments: "We had initiated on SEDG with a Hold with hopes of gaining more confidence coming out of RE+. Unfortunately, that didn't pan out. What we heard was a longer-than-expected muted outlook in Europe, and while US is recovering, there is still stiff competition. On the heels of our conversations at RE+ we have lowered ASPs further and are 13% / 15% below consensus in '25 / '26 and down 14% y/y. Consensus is assuming ASPs down LSD, while mgmt has previously discussed HSD/LDD declines. Given the heavy premium SEDG inverters trade vs its Chinese peers in Europe, we expect ASP declines to be more pronounced (risk of well beyond -10%.). There could be some upside on US ASPs from domestic content, but we expect that to be largely offset. As of 2Q, Europe was 37% of solar sales vs 64% in '23. Looking ahead, we expect Europe proportion to trend towards ~30%, but still be a meaningful share of the biz"

For an analyst ratings summary and ratings history on SolarEdge Technologies click here. For more ratings news on SolarEdge Technologies click here.

Shares of SolarEdge Technologies closed at $21.95 yesterday.

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